EURGBP Lower after EU Consumer Confidence meets forecasts
EURGBP gives up 10 pips at 0.9150 after the news while EURUSD trades flat at 1.1140. Traders await the key risk event for the week as the FOMC two-day policy meeting starts today, at which it is expected to cut interest rates by 25 basis points. Markets have already discounted a 25 basis points rate cut from Fed.
Here is the scorecard:
European Monetary Union Industrial Confidence came in at -7.4 below forecasts (-7) in July
European Monetary Union Economic Sentiment Indicator came in at 102.7, topping expectations (102.6) in July
European Monetary Union Consumer Confidence meets forecasts of -6.6 in July
European Monetary Union Services Sentiment meets expectations of 10.6 in July
European Monetary Union Business Climate came in at -0.12, below expectations of 0.08 in July
On the technical analysis side the short term momentum is positive for the pair as it trades above the major moving averages. The pair has been on a huge run higher since May after bottoming out around 0.8500 in a move to hit a high of 0.9051 last week. On the upside immediate resistance stands at 0.9189 today’s high while more offers will emerge at the 2017 high at 0.9306, followed by the 0.9582 level. On the downside first support stands at 0.9114 today’s low while next barrier is at 0.8992 the 100 hour moving average. Traders holding long positions can sit comfortably as long as the pair trades above 0.91. For those looking to sell EURGBP a break below 0.91 could be the signal for a correction down to 0.90 zone.Don’t miss a beat! Follow us on Twitter.